PRINCE2 Foundation Workshops -- Business Case

1PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
© Management Plaza
P2F-WS-BC-EN Version v01.02
PRINCE2® Foundation Workshops
By Frank Turley, Management Plaza
Theme: Business Case
Use this course in conjunction with the:
The PRINCE2® Foundation Training Manual
PRINCE2® is a Registered Trade Mark of the Cabinet Office.
PRINCE2™ is a Trade Mark of the Cabinet Office.

© Management Plaza
Theme Business Case: Topics
• Purpose of the Business Case theme
• What is a Business Case?
• Outputs, outcomes and benefits
• Types of Business Case
• The PRINCE2® Approach to Business Case (Develop,
Maintain)
• The contents of a Business Case
• Benefits Review Plan
• Roles and Responsibilities
Business Case Theme

© Management Plaza
• To establish mechanisms to judge whether the project is
(and remains) desirable, viable and achievable as a means
to support decision making in its (continued) investment
• It is a PRINCE2® principle that the project must have
continued business justification
Purpose of the Business Case theme
Business Case Theme

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• The Business Case presents the optimum mix of information
used to judge whether the project is (and remains) desirable,
viable and achievable, and therefore worthwhile investing in
• The Business Case is not a static document
– It is continually updating during the project with actuals
– It is continually used by the Project Board to see if the project is
still worth doing
What is a Business Case?
Business Case Theme

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• Output The product
• Outcome The result / Features / What can it do different
• Benefits Measurable improvement
Outputs, outcomes and benefits
• Output New CRM System
• Outcome Quicker searchers, easier to import data, faster reports
• Benefits 15% increase in sales, 20% reduction in admin costs
Example Project: New CRM System
Tangible product
E.g. CRM System
Output
Results in
Outcome
Results in
Benefits
Result of change
E.g. Easier to create reports
Measurable improvements
E.g. 30% reduction in sales costs
Based on OGC PRINCE2® material. Reproduced under license from OGC
• Why is their such a focus on monitoring benefits?
• Who do you think should monitor benefits for all closed projects
Questions
Business Case Theme

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New legislation, can’t afford not to do it
Good will in the community, press, “we care”
Business decides next products during project
Traditional projects – clear product description
E.g. Merge, Takeover, joint projects
Types of Business Case
• Compulsory
• Not-for-profit
• Evolving (Agile, RUP)
• Customer/supplier
• Multi-organization
PRINCE2® has identified 5 project types
Business Case Theme

© Management Plaza
Direction
ProjectBoard
Corp..
by Frank Turley
MgmtPlaza.com
Version 1.2c
Project
mandate
Corporate or Programme Management
Business Case
Benefits Review Plan
Management
ProjectManager
P
I
D
Project Brief
-- Outline BC
Develop Business Case
(Planning)
Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a ProjectPre-Project
PRINCE2® approach to Business Case: Develop BC
Develop the Business Case
• Outline Business Case is created in SU process
• Business Case is created in IP process (IP Stage)
• Owner is the Executive
• Project Manager can assist the Executive
Business Case Theme

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Pre-project
Initiation
Stage
Subsequent Delivery
Stages
Final Delivery
Stage
Post-
project
Verify outline
Business Case
Verify updated
Business Case
Verify the Business Case
Develop Business Case Maintain Business Case
Verify detailed
Business Case
Answer:
• First verification point by Project Board is at the end of SU process
• Second verification point by Project Board is at the end of IP process
• Next verifications points are at the end of each stage
• Last verification point for Project Board is at the end of the project
Question: Where do you verify the Business Case?
Business Case Theme

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Content of the Business Case
• An executive summary Introduction
• Reasons Why, what if not
• Business options Chosen option (do nothing/minimum/something)
• Expected benefits Measurable benefits
• Expected dis-benefits Side effects
• Timescale Project & when benefits will be realized
• Costs Project costs plus future maintenance
• Investment appraisal RoI calculation
• Major risks Summary of risks (taken from Risk Register)
What kind of information is in a Business Case?
Business Case Theme

© Management Plaza
1. Created by Project Manager in Initiation Stage
2. Information is provided by Senior User
3. Project Board approves the Benefits Review Plan
4. Check for realized Benefits at end of each stage
5. Plan Benefits Review after project (Post Project)
6. Check for Benefits (after project)
• Some projects check for realized benefits during the project:
• Example: New CRM functionality released to users after each stage
• The Senior Supplier is responsible for creating the products to achieve the Benefits
• Lastly the Corp… do the Benefit Review after the project. Eg: 6, 12, 18, 24 months
• Project Manager
• Senior User
• Project Board
• Project Manager
• Project Manager
• Corp/Program
• A plan that defines how & when benefit will be measured
• A plan to review the benefits  Benefits Review Plan
Benefits Review Plan Steps:
Pre-project
Initiation
Stage
Subsequent Delivery
Stages
Final Delivery
Stage
Post-
project
Create BRP
Check Benefits
Approve BRP
Check
Benefits
Who: PM/SU PM Corp…
Check Benefits
Plan Post Reviews
3
1
2
4 5 6
Business Case Theme

© Management Plaza
Delivery
TeamManager
Direction
ProjectBoard
Corp..
by Frank Turley
MgmtPlaza.com
Version 1.2d
Business Case Documentation
Business Case
Business Case
Stage Boundary: Updated
Management
ProjectManager
P
I
D
Based on OGC PRINCE2® material. Reproduced under license from OGCSU Process
Updated
Created
Business Case
Project Brief
-- Outline BC
Starting Up
A Project Closing a Project
Develop Business Case Maintain Business Case
Planning
Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary
Closing a Project
Pre-Project
Business Case management products created during a project
Project
mandate
Business Case documentation
1-outline Business Case
- Created by Executive: part of the Project Brief
2-Business Case
3-Benefits Review Plan
4-Updated Business Case
5-Updated Benefits Review Plan (if
necessary)
6-Update Benefits Review Plan
- Plan the next Benefits review meeting
7- Business Case (final update with cost data)
1 2
3
4
5
6
7
Business Case Theme

© Management Plaza
• Corporate or Prog Mgmt
• Executive
• Senior User
• Senior Supplier
• Project Assurance
• Project Manager
Roles and responsibilities
Reasons, project mandate, post-project benefits
Responsible for BC, Creates BC, Verify, Approve BRP
Provides Benefits info, Report on Benefits
Provide Resources
Assist Project / Audit that all is OK
Update BC, Creates BRP, Effect of Risk & Issues, Assists
the Executive with the creation of BC
Aware
Business Case Theme

© Management Plaza
1. Continued business justification
2. Learn from experience
3. Defined roles and responsibilities
4. Manage by stages
5. Manage by exception
6. Focus on products
7. Tailor to suit the project environment
Question: Which Principles does the Business Case theme support?
Theme Business Case
Where do you work this principle?
Even small or simple projects must have a Business Case
Business Case Theme

© Management Plaza
Delivery
TeamManager
Direction
ProjectBoard
Corp..
by Frank Turley
Management-Plaza.com
Version 1.2d
Authorize
initiation
Authorize
the project
Authorize a Stage
or Exception Plan
Give ad hoc
direction
Auth. project
closure
Checkpoint Reports
Directing a Project
Initiation – 1st Stage Closing a Project
Project
mandate
End Stage Rpt
CS: Highlight
Team Plan
CS: Issue/Exc. RptsNext Stage PlanIS Plan
Strategy:
Communication
Configuration
Quality & Risk
Business Case
Project Plan
or Exception Plan
Controlling a Stage
Created
Business Case
Stage Boundary: Updated
Stage Boundary: Created
Project Plan
Product Delivery: Created
Updated
Management
ProjectManager
Work Packages
-- Team Manager is also responsible
-- Created once during project (can be updated)
-- Created or updated once per stage
-- Created or updated many times during a stage
-- Once per Work Package
-- Many per Work Package
P
I
D
Project Controls
PMT - Roles
SU Process
Pre-Project
CP is the last part
of the last stage
End Project Rpt
Lessons Report
Draft Closure Not.
Updated
Created
Business Case
Project Plan
CS: Risk Register
CS: Issue Register
CS: Lessons Log
CS: Daily Log
CS: CIR
Project Brief
CIR docs (cmdb)
Lessons Log
Daily Log
Risk, Quality, Issue
Registers
+ Proof of Acceptance
Assists with Planning
*
*
Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a ProjectPre-Project
-- Outline BC
-- PPD
-- Approach
-- PMT
PBS (CIR)
PDs
PFD
*
*
Quality Register
Controlling a Stage
Updated
Starting Up
A Project
Closing a Project
Delivery Stages : Controlling a Stage & Stage Boundary
(Planning)
e.g.80%
New requirements?
PRINCE2® Processes (Management Product Map)
Follow on Actions
Issue Register

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Review: Theme Business Case
• Purpose of the Business Case theme
• What is a Business Case?
• Outputs, outcomes and benefits
• Types of Business Case
• The PRINCE2® Approach to Business Case (Develop, Maintain)
• The contents of a Business Case
• Benefits Review Plan
• Roles and Responsibilities
Q&A: PRINCE2® Foundation Q&A workbook (20 minutes)
Business Case Theme

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Business Case
Review Questions
These questions are taken from the Foundation Q&A Workbook
by Management Plaza
Business Case Theme

© Management Plaza
Business Case review questions
1. Which document is used to show the justification for the project?
2. Give an example of an output, an outcome and a benefit of a new train service between two
cities. (Your answers will be different to mine but just check if you are on the correct track ).
3. What do you think the purpose of the Business Case Theme is? Answer in your own words and
remember you will just have to recognize the purpose in an exam question so you are not
expected to be able to answer this question in full. (Tip: Try to remember one key word.)
4. Which theme provides mechanisms to judge whether the project is and remains desirable and
achievable?
5. What theme ensures the project is desirable, viable and achievable? So which theme looks to
see if the project is desirable, viable and achievable?
6. List one purpose of the Benefits Review Plan? Answer in your own words.
7. Do you think the purpose of the Business Case theme is to establish (provide) methods to judge
whether the ongoing project is justified?
8. Why is the Business Case updated in the Managing a Stage Boundary process?
9. What is a measureable improvement resulting from an outcome (Output, Outcome or Benefit)?
10. Which of the seven principles does the Business Case team support?
Business Case Theme

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Business Case review questions
11. Why might the Benefits Review Plan be updated during the Controlling a Stage process?
12. Which is a purpose of the Business Case theme? (Tip: Continued business justification).
– a) Identify which role is responsible for producing the Business Case.
– b) Establish a viable investment proposition.
13. How is a Benefits Review Plan used in the Closing a Project process? (Use your own words).
14. Which is the definition of a project outcome?
15. A measurable improvement that is perceived as an advantage by one or more stakeholders.
16. The reason for the project.
17. The result of the change derived from using the project’s output.
18. What is meant by the statement “PRINCE2 is based on a customer supplier environment”?
19. Who is responsible to make sure that the Business Case is verified at each key decision point
(e.g. end of each stage) in a project? The Business Case needs to be verified from a Business,
User and Supplier point of view.
20. What do you think is the main purpose of the Benefits Review Plan? (Tip: This is a plan).
Business Case Theme

© Management Plaza
Thanks for participating in this PRINCE2 Workshop
Our objectives at Management Plaza
• Help companies introduce PRINCE2 into their organization
• Provide PRINCE2 workshop content for Processes & Themes
• Provide Q&A at the end of each Workshop
• Provide a fully documented PRINCE2 Sample Project
• Provide PRINCE2 Diagrams (e.g. The PRINCE2 Product Map)
• Provide PRINCE2 Exams with FREE PRINCE2 Self Study course
Lets us know if you are interested in any of this information
• Contact us at support@mgmtplaza.com
Business Case Theme

PRINCE2 Foundation Workshops -- Business Case

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